Proposed amnesty could cover taxes from as far back as 2007 – BusinessWorld Online
THE Department of Finance (DoF) said on Monday that a proposed general tax amnesty (GTA) will likely cover unpaid internal revenue taxes as far back as 2007.
“The proposed general amnesty bill will cover all internal revenue taxes from 2024 and previous years. It could be up to 2007,” Finance Undersecretary Charlito Martin R. Mendoza said at a Senate Finance Committee briefing with the Development Budget Coordination Committee.
Mr. Mendoza said the DoF is still working out the details of the bill but it could “possibly” include unpaid Customs duties.
Finance Secretary Ralph G. Recto has said that amnesty legislation is set to be refiled to Congress this year, after having been vetoed in 2019.
In 2019, President Rodrigo R. Duterte rejected the GTA provisions of Republic Act No. 11213 but retained the estate tax amnesty.
The tax amnesty program will involve an amnesty charge equivalent to a portion of the outstanding unpaid tax in exchange for immunity from civil, criminal, and administrative penalties.
The DoF expects additional revenue from the proposed bill, though no projections are available as yet.
Mr. Mendoza said the DoF is still working on how to address Mr. Duterte’s veto.
At the same briefing, the government aims to trim the share of the deficit relative to gross domestic product to 3.1% by 2030.
“With higher government revenue collections and improved expenditure management, our fiscal deficit will drop from the pandemic high of 8.6%, to 5.5% in 2025 and down to about 4% by 2028. It will further drop to 3% in 2030,” Finance Undersecretary Karlo Fermin S. Adriano said.
Mr. Adriano said government efforts to curb wasteful expenditure are crucial to this forecast.
The DoF reiterated its no new taxes pledge until 2028, with the exemption of the Single Use Plastics Act.
The excise tax on single-use plastic bags was one of the 28 priority bills identified by the Legislative-Executive Development Advisory Council.
While it was approved by the House on third reading in 2022, the measure remains with the Senate Ways and Means Committee. — Aubrey Rose A. Inosante
